Attachment must occur in order to make a security interest enforceable against the debtor and against third parties.

Question

Quizplus · Accepted Answer

For a security interest to be enforceable against the debtor and against third parties, it must first attach to the collateral. Attachment occurs when (1) value has been given, (2) the debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party, and (3) the debtor has authenticated a security agreement that provides a description of the collateral or the collateral is in the possession of the secured party pursuant to the debtor's security agreement.

Attachment Must Occur in Order to Make a Security Interest